2020-07-09 11:18:42 | Mohawk quiet period hinders lawsuit response, says SunTrustA shareholder lawsuit filed earlier this year has recently added new court filings that allege multiple issues inside Mohawk Industries, the most damaging allegation being its revenue recognition practices which included shipping goods on the last day of the quarter and then having those as returns in the following quarter, SunTrust analyst Keith Hughes tells investors in a research note. The allegations being made during the company's quiet period "have hamstrung any response," says Hughes, who admits "it is hard to say as an outsider whether these have merit at this point." However, given the size of Mohawk, it would need "widespread practices to boost revenues via the method" alleged, adds the analyst, who keeps a Buy rating on Mohawk with a $119 price target. The stock in late morning trading is down 19% to $74.10. The question now shifts to whether the allegations will result in a full SEC investigation, Hughes writes. | |
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